tv After the Bell FOX Business January 2, 2019 4:00pm-5:00pm EST
artificial intelligence, virtual reality going into everything. [closing bell rings] the stock is down a third. i'm putting money there. liz: great to see you even though you're a tesla hater. david dietze, giving predictions from 2019. markets making quite a comeback. we have green on the screen. >> stocks remaining volatile as we close out the first trading day of the year, 2019. we have edged higher on first trading day of the year. up 16 points. after being down as much as 400 points earlier on in the session. s&p 500 fighting for gains
susan: i'm susan li in for melissa francis. ashley: i'm ashley webster in for connell mcshane. a partial government shutdown approaches second week. we have latest where the standoff could go from here if it goes anywhere. happening one day before democrats take control of the house. nancy pelosi and company planning to offer legislation to end the shutdown. however, no money for the president's border wall. but that is not all the democrat's agenda. among our guest this is hour, art laffer, howard kurtz and charlie hurt from the "washington examiner." susan: let's get back to the markets. travelers, unitedhealth and coca-cola are biggest drags on the dow. kristina we managed to make it into positive territory at the end. >> makes this day more existing when you have no idea what you will talk about before going on air. as you mentioned all in the green. quite a volatile day.
selloff in the morning. saw part of that uptick. part of the uptick after 10 a.m. eastern time, was the fact energy stocks or oil was climbing higher. there was a report, saudi arabia yes indeed go ahead with production cuts in the month of september. they followed through on their promise. that reduced, helped reduce some of the supply glut. the other side of the story, saudi arabia reduced export to the united states. we know domestic production has been ramping up. we see on the screen, 46 bucks a barrel for oil, climbing a little bit higher but the big question when will it hit or go higher because a break even point for a lot of u.s. shale drillers is about $40 u.s. a barrel. some of those, we'll switch to energy, talking about energy, some energy shares did climb higher across the board, leads the positive uptrend. with hess corporation seeing on the screen, up about $1.74. up 4% which is a pretty drastic change. haliburton up 2%.
devin up 3%. exxonmobil. all of the energy sector climbing higher after that oil report came out. you're seeing the tech sectorally a little bit. this is cause of a selloff earlier this morning. you never know what you talk about today. some of the leaders. look facebook, drastically being hit. one analyst report i read saying they expect a price target of $160. there could still be movement. some of the other tech sectors, tech stocks, did climb higher for the day. some of the news came out of new york stock exchange. throw it back to you guys. ashley: kristina, thank you. good day for energy, good day for tech, we got it. there has been a wild ride for stocks. president trump commenting on the volatility just earlier today. take a listen. >> we had a little glitch in the stock market last month but up 30% from the time i got elected. and it will go up once we settle trade issues and once a couple of other things happen, it will go up.
it has a long way to go. ashley: got a long way to go sass the president. here so react veronica dagher from "the wall street journal." danielle dimartino booth, former federal reserve advisor and fed-up author. danielle, aren't we all doing that. danielle, president dismissing december, a little glitch. once we get trade talks and trade issues sorted out we have a long way to go up. what do you think of what the president has to say. >> glad he sees the trade issue is one of the big overhangs on this market right now. investors will worry what happens with china. how are things boeing to play out. that is just one of their big worries. another big worry is interest rates. how is the market adapting to higher interest rates, not to mention slowing global growth. there is a mix of things bothering investors. you know what the one thing they can count on for the next couple months at least until we get resolution with china, is more volatility. ashley: exactly.
let me bring you in, danielle, very quickly on the issue. what are the markets telling us? veronica touched on that. a global slowdown which seems very well-entrenched especially in china. what does that do to our market here? >> you know i was particularly surprised to see the stock market close up today because we have got a contracting factory sector in china for the first time in 19 months. that is a real bonafide headline but there is something to be said for what the united states has that the rest of the world still lacks, at least for the next few days until the buyback window closes and blacks out. share buybacks are really pumping up the u.s. market. that has been a major source of support and strength versus rest of the world. you saw world stock markets overnight, just in terrible shape. ashley: right. >> so there is something to be said for what we have going for us here for the next few days. but again earnings season is
coming. buyback window is closing. ashley: maybe we're the least dirtiest shirt in the laundry. as they say. we'll be back with more. >> trade talks resuming in beijing. president trump says the negotiations are coming along very well. we'll see what happens. veronica we've been saying this for a while? >> for a while, right. we'll see what happens if we get a deal, if it happens by march. if we get a deal, what deal will it be and will it be enforceable? we've had these discussions with china before. they laid terms out, we accepted but things don't actually come to pass. what will happen is the big unknown and what the time frame is. will be interesting to see what the president's tolerance as he mentioned before. he is is watching the stock market so closely. does he have the tolerance to stick with a hard-line with china, if the stock market keeps falling? that is another big question. susan: mark-to-market administration, you want the stock market to go up.
danielle, you know as we talked about, you just mentioned it with ashley, this is probably one of the overhangs on the market. don't you think expectations are set so low, we get some sort of positive development, markets go up in the first quarter? >> i think that is certainly feasible. but "the new york times" story that hit the wires this morning, with that featured lighthizer talking very tough, did give me pause and make me worry we're actually going to see increase in tariffs to 25% if he still has the president's ear. so we will have to wait and see. as you said, this is a mark-to-market administration. that is brilliant. having to borrow that by the way. things can change by the day. if the administration is hawkish as lighthizer seemed to indicate in that story this morning, then we've got a long way to go before here and march 1st. susan: i will patent it. what i have to do. ladies stand by. ashley: just send a check to
susan. trying to find common browned. president trump meeting with democrat and republican leaders at the white house, hoping of course to strike a deal to end the partial government shutdown, which by the way is now in its 12th day. blake burman with very latest on this attempt i guess to end the impasse, blake. reporter: not tiptoeing into 2019 as there have been two major high-profile meetings at the white house. we believe possibly one of them might be going on inside of the situation room. for the first time since the shutdown started 12 days ago, the president and leadership among congressional democrats meeting face-to-face here at the white house inside the situation room, that meaning the president, congressional democrats its leadership, leadership among congressional republican as well. the white house saying they're meeting inside of the situation room so they all can get their heads around the need for border security. >> all this is to tell --
>> issuing demands it -- >> chuck, nancy, some others from i.c.e. and from border patrol, and also from some local law enforcement, how bad it is and how dangerous it is why we need a wall but they know that. reporter: comments came from president trump today with a cabinet meeting that lasted roughly 100 minutes. the president after the holiday break using it as another way to continue to pitch the need for a border wall and get more than five billion dollars for that wall. >> not 2.5. we're asking for 5.6, and you know, somebody said 2.5. no, look, this is national security we're talking about. i mean we spend in afghanistan more in one month than what weir talking about for the wall. reporter: but the reality here in washington tomorrow democrats are going to officially have the
house of representatives, run the house of representatives. nancy pelosi already released a game plan for democrats. they're going to pass a series of legislation that will keep the government running, open back up, shuttered government departments through, keep them running through the end of september alongwith funding the department of homeland security until february 8th. that is when democrats pass that, will once again put pressure on republicans and the white house. ashley: black and forth. blake burman, thank you very much. >> talk about tesla tumbling today. the automaker delivering fewer vehicles last quarter than wall street had expected and they're announcing across the board price cut of $2,000. that is to offset a reduction in the federal tax credit for electric vehicles. veronica, so we have the stock still trading at three 10. i think still much higher than it was earlier on this year. >> higher than it was, but you look at the price cut, and it took investors by surprise.
you know investors don't like surprises. it raises some questions about demand. and so if you have to cut prices to help goose demand in a relatively, in a good economy, when interest rates are still relatively low, what happens to demand when interest rates go higher and netflix, not netflix, sorry, tesla, starts to get more competition? we're hearing more luxury carmakers are starting to boost and start production of electric cars. that will give tesla a run for its money. susan: audi being one of those and other brand names as well, luxury brand names. danielle, what do you think of tesla with elon musk at the helm? >> well, look, the stock remains priced to perfection as far as i'm concerned and if you tell investors basically, we are putting, our margins are capped, that is not the signal that people are looking for. again to veronica's point, this is expanding economy. we still have very decent run
rates in terms of car sales in this country. so i'm concerned about the leadership, i have been concerned about the leadership of the company for some time now but now we're calling into question the company's ability to produce as much as what the street is expecting as well as to make profits it is demanding in exchange for its exorbitantly-priced shares. ashley: all right, danielle. move on quickly. get to this issue if we can. veronica mentioned it, netflix under fire after dropping a come my show, "patriot act." at the kingdom's request they did this. they said we strongly support artistic freedom, worldwide and only removed the episode after receiving a valid equal request and complying to local law. did they do the right thing or mistake. >> what happens when countries start demanding the whole thing.
they have to think about this with the younger business model. think about younger millenial subscribers in the united states. this is not a good luck for them. ashley: i think you're right. veronica, danielle, thanks for joining us this afternoon. we appreciate it. susan: president trump finding common ground with congressional leaders at the white house over border security as the government shutdown stretches for a 12 day. why the commander-in-chief says the democrats are using a standstill as a 2020 political move. ashley: republican leaders embracing for a new blue congress. set to advance funding measures to reopen the government for business but without funding for the wall. will president trump stand firm on his demands? we'll talk to charlie hurt, "washington times" opinion editor next. susan: and it's a new year. same reputation. facebook ceo mark zuckerberg facing backlash for his end of the year message defending his company's progress. can the social media giant shake
off the shaky past? howard kurtz, fox news media analyst is coming your way next. . the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can provide protected income for life. learn more at retireyourrisk.org
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president trump? let's bring in edward lawrence standing live on capitol hill with the details. edward? reporter: the short answer, susan, it will not have the support. current house minority leader nancy pelosi expected to introduce bills once she becomes house speaker, if she does tomorrow, that would fund the government, all of the agencies through the fiscal year except for the department of homeland security. that would only be funded through february 8th. there would be no extra money given for an extra border wall. freshman republican or freshman democrat representatives coming into congress here have been very vocal about this issue. in fact representative-elect max rose from new york, says he does not support nancy pelosi for speaker but there needs to be a deal to open the federal government. >> this should not be too hard but right now we're in a pitiful situation where we can't even open up the government because we're playing a game of brinksmanship and it is absolutely wrong.
reporter: republicans in the house feel like they have done their job of the they passed a bill at the end of last year that had $5.6 billion, exactly what the president wanted for a border wall. >> if you look back just five years ago when the democrats were all over this issue. they were the ones who were funding the wall. they were the ones who were funding security for the border. reporter: that bill is ready to go in the senate. but it needs 60 votes. so far democrats are trying to look at senator chuck schumer what he believes. senator chuck schumer so far saying no to anymore extra honey for a border wall. susan: should be interesting 2019. edward, thank you so much. ashley: joining us now to react to all of this, charlie hurt, "the washington times" opinion editor, of course a fox news contributor. charlie, charles, thank you for being here. charles, thank you for being here. >> sounds more english. ashley: it does. edward to a charles. very kingly.
partial government shutdown is in its 12th day who blinks first? >> i think in the end, if you step back and look at the big picture optics here, donald trump is on the side of what i think most americans feel which is that they want sanity at the border. they want the border secured. again this is a big picture. a lot of the democrats that are opposed to him, you know, are supporting things like sanctuary cities and abolishing i.c.e. just the big picture dynamics of that tells me that if this goes on for a couple of weeks, eventually democrats are going to start -- ashley: are they going to cave? >> i think they will end up caving. they're not going to if i have trump everything he wants of course, but they will give him enough he can declare victory. >> what is the compromise do you think in regard to funding for the wall? >> i think it will be, some amount of funding between, somewhere between zero and five billion. but of course, the only real
legitimate offer that has been made to actually solve the crisis in the first place was president trump's offer. when he offered to solve daca, end chain migration and end visa lottery. ashley: right. >> as well as build the wall. there is no reason for democrats not to accept that, except either they really didn't want to go with securing the border, or they didn't want to give donald trump a victory. ashley: interesting, that "the wall street journal" editorial board wrote the president should trade dreamer legislation for more border money. i looked at that really, haven't we been down this road and it was rejected? >> it was rejected by democrats. it's a good question, why didn't they like that? because they don't want to give trump a victory he can claim, that he solved -- ashley: president base -- >> that is exactly the problem for people like me. that is giving too much. but, in terms of coming to the table with an honest solution, where everybody gets something that was the smartest, bravest
solution and it was rejected out of hand. ashley: you talked, you used the word optics always so important in the world of politics, as this does drag on, no one blinking up to this point, who does get the blame ultimately? >> i think obviously president trump. there is, videotape of him saying he will own this thing but, again the guy, he is so smart about this kind of thing. he is, he is a very shrewd marketer, you realize again, step back look at big picture, on the side of trying to secure the border, bring sanity to the border, so that children don't die at the border which is something that breaks everybody's hearts, if that is where he is in this, i think he wins the -- ashley: kind of his water loo, isn't it? this was his main campaign point he made when he won the presidency. >> absolutely is. it is why, it is why he won. why he won not only general election, why he won the primary. this issue has been neglected by
both parties. both parties deserve endless shame for what they have done to allow the situation to get as ad as it is. i would argue democrats are far worse about it, far more disingenuous about it. republicans do not have clean hands. donald trump listened to people, this is important issue not just to republicans and also to democratic voters. as you point out, it is why he won. ashley: exactly right. charles, thanks for joining us. >> appreciate it. susan: questioning free handouts, many on the left support socialist ideas as democrats take the house on thursday. what would the plans mean for our economy? one economic warning after another. will we really see recession in 2019 or can we expect another year of robust growth? former reagan economic advisor art laffer, joining us responding to it all after this. ♪
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ashley: breaking news for you. republican leaders speaking to reporters after meeting with president trump on border security. let's listen in. >> the leadership try to get this done. reporter: [inaudible]. >> i was a little disappointed with, i would say, some on the other side. they wouldn't, once the secretary started, the senator schumer interrupted her, they really didn't want to hear it. they challenged some points the secretary made. we were hopeful we could get
more into negotiation. i know the vice president had sat down with senator schumer, had given him paper, worked to try to come to an agreement, find common ground. i would hope we get a little more of that today. hopefully friday we'll be able to get there. [shouting questions] >> doesn't have to last long at all. i think we can come to agreement real quickly. the president thought after the leadership races when people would be more willing to come to an agreement. reporter: are you compromising? would there be compromise on both sides. >> what did senator schumer say when he interrupted. >> i'm sorry? >> you said he interrupted the homeland security secretary, what did he say? >> they wanted to go on, without going through the briefing, going on with their bill they were bringing up tomorrow. the president has been very clear that, not the bill he would support. and, leader mcconnell said he is is not bringing anything up that will not become law.
[shouting questions] >> the president, the president also made it clear his number one responsibility is to keep this country safe. secretary nielsen wanted to go over very alarming numbers, things that are happening at border, and last year. last year alone 3700 known or suspected terrorists were stopped from entering this country. there are a lot of bad things happening and the reason he wants to secure the border, the bill we passed in the house, the start of a negotiations was over 5 1/2 billion dollars for the fiscal year. they haven't put a counteroffer on the table. you saw the vice president negotiating. the president and vice president stayed here over the christmas holidays and there was absolutely no negotiation from the other side. so they want to keep delaying and have a government shutdown while president trump said he wants to secure the border. [shouting questions] reporter: can you explain specifically how mexico will pay for this wall? what specific provision of the u.s. mca will give the money and
if that money coming, why are you having this discussion with the american taxpayer paying for isn't. >> why we're having a discussion, we have a crisis on the border. do you know in this caravan, 1/3 of all the women are being, having, some are being raped. some violently treated. children have challenges coming through. we have another caravan starting to come. we have a real challenge here. i think that is why both sides can sit down, find a compromise, that actually secures the border. we had everybody in the room said they wanted to have secure border. >> how will they pay for it? >> a combination to make it solved. that is why the president, i watched him in there, stay very calm throughout the entire discussion. he wanted to give latest statistics going forward and that is why we will be back on friday, we wan to make sure, this, we want to make sure the border is secure, more importantly we want to make sure this post -- government is open. why the vice president went to the senate when we had the challenge just a couple weeks
ago. no counteroffer came back. there was not a counteroffer today. hopefully friday there will be. [shouting questions] susan: we have gop congressional leadership, kevin mccarthy, incoming minority leader, steve scalise, the minority whip in the house. art, you were hearing some of that. sounds like right now a standstill will last for a while? >> i think it might last for a while. i've been around with this for a long, long time. i've seen the shutdowns for years and years. it doesn't work to anyone's advantage, especially when donald trump has the, has the right issue at hand. he is promised that wall. he has, got elected president. i mean it is $4 billion, $5 billion. i think the longer democrats postpone this, the more danger they're in of getting some real political damage by it. it doesn't enure to their benefits.
i never seen shutdown in the congress. susan: i have to interrupt you right now. let's listen to the democratic congressional leaders. >> in a separate bill, the bill that mr. connell did for continuing resolution for homeland security bill, february 8th, using his exact date. we have given, we have given the republican as chance to take yes for an answer. we have taken their proposals unamended by any house bipartisan amendments but, just staying true to what the senate has already done. our question to the president and to the republicans is, why don't you accept what you have already done to open up government and that enables us to have 30 days to negotiate for border security. democrats have been committed to protecting our borders. it is the oath of office we take to protect and defend the has been very important to us. and we have committed resources to it, when we were in the
majority and will continue to do so. reporter: you're going -- >> let each speak please. >> yield to the distinguished -- >> the bottom line is very simple. we asked the president to support the bills that we support that will open up government. we asked him to give us one good reason. i asked him directly, i said, mr. president, give me one good reason why you should continue your shutdown of the eight cabinet departments while we are debating our differences on homeland security. he could not give a good answer. so we would hope, that they would, reconsider, and would support the very bills that passed the senate, four of them 92-6, two of them, unanimously in the appropriations committee, with mitch mcconnell's support.
the only reason that they are shutting down the government is very simple. they want to try and leverage that shutdown into their proposals on border security. we have, we want strong border security, we believe ours are better. but to use the shutdown as hostage, which they had no argument against, is wrong. and we would urge them respectfully, to reconsider and support these bills, which are bipartisan, one of which mitch mcconnell proposed, open up the government as we continue to debate what is the best way to secure our border. reporter: do you see this lasting very long, the shutdown? >> we hope it doesn't. we hope they will not use the american people, the millions who depend on these eight
departments, and the workers, who are either not working or not getting paid as hostages to have a temper tantrum, pound the table, say it is our way or we hurt all these people. we hope that won't happen. again they couldn't give us once answer why they wouldn't support the first bill that leader pelosi and, speaker pelosi and leader hoyer will put on the floor that will open up the government. [shouting questions] >> let me add this, let me add this, almost everybody in the room, i won't say everybody, believes that shutting down government is a stupid public policy. >> who doesn't believe that? >> it will put 800,000 people who work for the federal government at risk, and it puts millions of people who rely on the federal government on daily basis at risk. we are going, we are going to propose tomorrow, a bill that has gotten the support of the senate and the house. reporter: white house says
nonstarter, sir, why move forward? >> that is it our responsibility as coequal branch of government do that which we think is right. reporter: will i compromise? >> we hope he will compromise. he ought to compromise. we are for border security. but we're also for offering the people's government in an effective fashion. >> the bottom line, the bottom line is very simple, what our last meeting, the president said, i am going to shut the government down. they are now feeling the heat. it is not helping the president. it is not helping the republicans. to be the owners of this shut down. today we gave them opportunity to get out of that, and open up the government as we debate border security. and to say to them, because he says he won't sign it and use the government as hostage, we should just give in, the american people don't want that. that is bad for our country. that is not the way to govern. [shouting questions]
>> we're asking the president to open up government. we are giving him a republican path to do that. why would he not do it? why would he not do it? [shouting questions] susan: there you have it, congressional leadership, nancy pelosi, chuck schumer, steny hoyer back from christmas vacation. art laffer is listening in i'm sure. they said that it is on the president at this point, they have offered bipartisan bills to get the government reopened. is that necessarily true? >> no, i don't think so. you're talking about a $5 billion thing for the wall the president proposed elected on. they can change this thing immediately. i'm no expert on walls whether it works well or doesn't work well, a lot of democrats would like to see the wall, they're holding back to embarass the president. that seems very clear and simple to me. i watched it being done many, many times before.
but the democrats are ones who are having a temper tantrum not the republicans. president is clear. he wants five billion. not a huge number in terms of overall budget. not been shown to proven ineffective or proven wrong, far from it. get on with it. susan: art, we had tweets from president trump, saying mexico will pay for this wall. >> i love it. susan: people are not sure that is the case. >> i'm not sure it is the case either but whatever it is, it should be built. and it should be built and should be put into this budget, get over it, not use this stuff as political thing. enures always to the detriment of congress. frankly they can't respond quickly and president can. very much to their advantage to pass 5 billion and get on with legislation. susan: okay. art, that makes sense to me. thank you so much. >> my pleasure. thank you. ashley: breaking news for you.
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revising right now will be 84 billion. you have operating expenses that are going to be approximately 8.7 billion. the revenue line is important. consensus 91 billion. apple had issues with shipments a lot of producers and suppliers, alluding to the fact people not buying many i phones. makes sense to do this, with all the negative reports coming through. the company has faced emerging market challenges in particular greater china. that is a huge market when you consider the fact apple has been there quite some time. huawei continues to steal market share. you and susan will continue to talk about that. the biggest concern i grabbed, anticipated iphone revenue expected to drop, hence the reason why, they put out this
report. fenn this is from apple, to apple investors. stating they were revising their guidance for physical 2019. revenue 84 billion. gross margin of approximately 38%. other income comes in -- consensus 81 billion. susan: midpoint of the range. ashley: now coming in at 84. >> exactly. we don't know exactly y they're not alluding to it as a note why they're alluding to it. this could be sign of reacting to negative news, there could be a slowdown. news just breaking. susan: kristina, thank you so much. we had, i think we had expectations of it would be a slower quarter for apple, given they have stopped breaking out iphone shipments in the quarterly reports. ashley: all the suppliers -- susan: that is something they have done since the 1980s. when you stop a 30-year
tradition, that gave market pause that maybe iphone demand is not what it used to be. ashley: we'll see what the stock does when it reopens tomorrow. interesting. susan: commander-in-chief firing back at mitt romney after the senator-elect hit him for a job half-done that is. setting the stage for 2020. elizabeth warren set to stomach ahead of a potential presidential bid. why they think democratic leaders could overplay their hand. that is coming your way next. ♪ the consequences underwater can escalate quickly. the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can provide protected income for life. learn more at retireyourrisk.org
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and chris at this setzer, democratic strategist and president of new heights communications. great to have you with us. >> thank you. >> ted cruz was the first to announce his candidacy in 2016. we all know what happened that year. you think it's a mistake, christie for elizabeth warren to announce so quickly, so soon? >> it's a good question. on one hand i thought it was a weird time to do it. new year's eve when not too many people were paying attention and here we are early january, we're still, i think it is very difficult to get people's focus. we're still having holiday brain and all of that. one thing i think was really good for her to do, was to be the first one out of the gate. by doing so you set the terms of the debate. you get to be the person who is talking about, you know, you're saying what we're talking about, as opposed to reacting what seven candidates before you have been talking about. i remember back in '08, hillary clinton announced very soon
after barack obama did. and it made her look like, just from the very first decision, as though she was responding to him in terms of talking about what she wanted to. susan: angela, "the boston globe" also called elizabeth warren, divisive figure, as well, similar to hillary clinton. very interesting she announced her exploratory committee she didn't mention president trump at all. >> elizabeth warren is trying to set her own path. a lot of conversation around here has been in relation to president trump because he has attacked her for lying about her genetics. i say attacked. brought it up. she was the person who decided to lie about her genetic background. it shouldn't matter. she made an issue about it. that issue makes her look terrible. elizabeth warren doesn't have iowa problem, she has integrity problem. she know she has to start early to build any sense of integrity and authenticity, whatever you think of president trump, people
know he is authentic, and won in 16. elizabeth warren has a work cut out for her and it's a long road. susan: we saw a broadside attack against the commander-in-chief in a "washington post" op-ed. senator-elect mitt romney praising president trump about big ticket items of tax reform and trade, but with a catch, policies and appointments are only a part of a presidency. to a great degree, a presidency shapes the public character of the nation. a president should unite us and inspire us to follow our better angels. a president should also demonstrate the essential qualities of honesty and integrity and elevates the national discourse with comity and also mutual respect. it is in this province where the incumbent's shortfall has been most glaring. the president of course firing back, take a listen. >> well i wish mitt could be more after team player.
you know, i'm surprised he did it this quickly. i was expecting something but i was surprised he did it this quickly. look, i endorsed him. he thanked me very profusely. it was very nice. but i am surprised, we've done a lot. he says it. i read his op-ed. he said it. susan: angela, a broadside? >> i think it was interesting that mitt chose his moment before he is even been sworn in to the senate. people know that mitt romney is different from donald trump. none of that is new information. it is also not new that washington, d.c., has a lack of moral leadership. where we disagree, some people think trump invented that lack of morality. plenty of others think he just exposed it. i can tell you d.c. has been subject to immoral leadership for a long, long time. we didn't get $20 trillion in debt overnight. we didn't get this current messy health care system overnight. those were developed by people who were not moral leaders. so mitt's right about a lot of
things. i don't think anyone who voted for trump was deluded they were casting a ballot for an eye gel scout but mitt romney ought to focus on being successful senator, instead of being unsuccessful presidential candidate. susan: christie, i would have loved to given you more as well but we have to get back to the markets with apple resuming trade. apple, ashley -- ashley: they halted trade on news. let's take a look at apple resuming trading down almost 6%. 5 1/2%. down 149 bucks. this after they said, revenue coming in for the first quarter will come in closer to $89 billion. the ranges from 89 to 93. as you said earlier, susan, that is the midpoint. certainly disappointing from what we understand, in a letter to ininvestors from tim cook ceo, blaming this almost 100% on iphone revenue dropping and in particular in china. there you have it.
the stock now back, trading after being halted briefly, down 7% now. apple in after-hours at 146. susan: it is an index heavyweight and tomorrow is a drag on broader markets. we have sad news to bring to you. blake nordstrom, the copresident of the retail company with the same name has died at the age of 58. nordstrom was diagnosed with lymphoma a month ago but a spokesperson did not confirm if this was the cause of debt. his siblings continue run the company. let me get that to you again. his siblings continue to run the company. our thoughts and prayers of course, are with the nordstrom family. deserves the hard work that went into the science behind vascepa. prescription vascepa. vascepa, along with diet and exercise,
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after they revise lower. let's get back to christina partsinevelos and i think they pretty much hit the bar pretty low when guidance missed in their last earnings report card and i guess they're making it official at this point. reporter: yeah it's very detailed in regards to this warning for their revenue going forward. i'm surprised in all the details what we're seeing is they're not just blaming greater china and the lack of iphone demand but they did say too there are other reasons impacting iphone performance including again consumers adapting to a world with fewer carrier subsidiaries, the u.s. dollar strength related to price increases, also some customers that are taking advantage of significantly reduced pricing for iphone batteries and replacements but overall they are focusing on macro economic trends as well as weakness in china, they alluded to the second half of the year slowing down and growth when it comes to china, they also said too they saw fewer shipments they said that they the strong, sorry u.s. dollar, so let me
correct that last statement we knew the strong u.s. dollar would create foreign exchange headwinds so that's adding to it and further other emerging marketses too are seeing weakness so not just about china you're seeing weakness in emerging markets like brazil as well as mexico, pole and poland, malaysia, weakness in china, consumers changing their preferences not upgrading as strong as they thought they would be; however they were bull ish, they said they did see strength when it came to their services, their services generated over $10.8 billion in revenue during the quarter. again, this is growing to a new quarterly record, the company apple itself in this statement expects to report a new all-time high for apple's earnings per share so again earnings per share is expected to come out and expecting an all-time high nonetheless, they are reducing the revenue guidance to $84 billion that's why you're
seeing plunge there. >> they've been touting their services for a while and if one part isn't working the other part you try to make a little bit better. ashley? ashley: well let's bring in gary kaltbaum, a fox news contributor on the phone to comment on this. okay so we have problems in china, gary, for apple, a strong dollar that christina talked about and maybe the upgrades to the model is just not cutting it with the consumer out there. not only in china but the emerging markets and therefore, iphone revenue is a big reason for this shortfall. your thoughts? >> yeah, and revenues are going to be down year-over-year that hasn't happened very often, and this is also happening in a very fragile market to boot. when you i think apple right now if it trades where it is in the morning is going to lose about $55 billion of market cap, it's in the dow it's going to affect the dow it's pretty much the biggest stock in the nasdac 100 going to affect that and nasdac 100 futures are getting wacked
and it's also one of these growth beta-type names so all of the beta stocks are getting hit whether they have to do with apple or not. just keep in mind the suppliers have been cutting their numbers for three months now. ashley: right. >> i'm not so sure this was unexpected but the amount they're cutting is pretty much on the unexpected side because apple's guidance has already been coming down over the last two months this one looks like the final nail and should be an interesting morning for both apple and a market that's already as i said, very fragile. ashley: so gary this is a company that's seeing its revenue drop-off on iphones people are hanging on to their smartphones for longer and now they have to pivot to the service side of things is that where the focus has to be for apple now? >> well it better be because look i think we hit a price wall with what they've been charging on phone and also you said it best. people don't need to upgrade as much as they used to want to upgrade in the past, and when you hold on it longer, that means sales are not going to be
as strong and one plus one equals two when it comes to markets and we all know about markets and guidance on earnings , it's a beat the number game and now not only you beat the number but you miss it by a wide margin and when you are apple, which arguably is one of the big bell weathers in the market it is meaningful. ashley: all right gary kaltbaum thank you so much for taking the time to jump on the phone with us to talk about apple again guidance coming in a lot shorter for the first quarter revenue side, 84 billion the original guidance was 89 to 93, to gary's point that was a bigger cut. >> susan: also product mix that didn't spark that much interest and enthoused buyers and of course, some of the consumers since the cheaper iphone xr, we had an idea already it wasn't selling as well as anticipated, and also by the way, s&p right now we're looking at a drag from apple so if apple is down 11 points that's probably going to translate to an 81 point drop to the dow.
ashley: just by apple alone and will this drag other tech companies with it that tends to happen so it could be a rough start to the day tomorrow on the dow but right now after-hours apple down 7%. >> susan: index heavy, there you go that does it for both, bulls & bears starts right now. david: we have breaking news on apple that's just coming out right now, ceo tim cook warning investors that holiday sales quarter was a big miss in particular, lower than expected iphone revenue, primarily from china. shares of apple are plunging after-hours as well as the overall shares of nasdac and tech stocks, it's going to be an ugly day tomorrow let's get a preview oil davis adjoining me liz peek, john layfield, robert wolf what do you think is going on here? >> they mentioned iphone upgrades was lackluster in emerging markets and they even mentioned china didn't see the sales they were expecting. i know we're going to talk a little about the china manufacturing numbers slowed downod